多宝游戏下载 Supervisory Approach Regarding Changes to HMDA鈥檚 Closed-End Mortgage Loan Volume Reporting Threshold
Summary:
多宝游戏下载 (多宝游戏下载) is issuing this Financial Institution Letter to inform supervised institutions of recent changes regarding the Home Mortgage Disclosure Act (HMDA) reporting threshold for closed-end mortgage loans and the 多宝游戏下载鈥檚 supervisory approach for enforcing related requirements. For 多宝游戏下载-supervised institutions that meet Regulation C鈥檚 coverage requirements, the threshold for reporting data on closed-end mortgage loans is now 25 loans in each of the two preceding calendar years. In addition, for closed-end mortgage data collected in the years 2022, 2021, or 2020, the 多宝游戏下载 does not intend to initiate enforcement actions or cite HMDA violations for certain failures to report such loan data, as described in detail below.
Statement of Applicability: The contents of, and material referenced in, this FIL apply to all 多宝游戏下载-supervised financial institutions.
Highlights:
On September 23, 2022, the United States District Court for the District of Columbia (Court) issued an order vacating the CFPB 2020 HMDA Final Rule regarding the loan volume reporting threshold requirements for closed-end mortgage loans.
- As a follow-up to the Court鈥檚 decision, the CFPB issued a statement on December 6, 2022, indicating that the Court鈥檚 decision means that the threshold for reporting closed-end mortgage loan data pursuant to HMDA is now 25 loans in each of the two preceding calendar years, which was the threshold established by the CFPB鈥檚 2015 HMDA Final Rule, rather than the 100-loan threshold set by the CFPB鈥檚 subsequent 2020 HMDA Final Rule. The CFPB also announced that for those financial institutions subject to its jurisdiction, it does not intend to initiate enforcement actions or cite HMDA violations for failures to report closed-end mortgage loan data collected in 2022, 2021, or 2020, if the institutions (1) meet Regulation C鈥檚 other coverage requirements and (2) originated at least 25 closed-end mortgage loans in each of the two preceding calendar years but fewer than 100 closed-end mortgage loans in either or both of the two preceding calendar years. The CFPB鈥檚 announcement can be found .
- Like the CFPB, the 多宝游戏下载 recognizes that financial institutions affected by this change may need time to implement or adjust policies, procedures, systems, and operations to come into compliance with reporting obligations. Accordingly, for closed-end mortgage data, the 多宝游戏下载 plans to implement a supervisory approach for 多宝游戏下载-supervised institutions consistent with the CFPB鈥檚 approach. For 多宝游戏下载-supervised institutions that (1) are subject to Regulation C鈥檚 other coverage requirements, and (2) originated at least 25 closed-end mortgage loans in each of the two preceding calendar years, but fewer than 100 closed-end mortgage loans in either or both of the two preceding calendar years, the 多宝游戏下载 does not intend to initiate enforcement actions or cite HMDA violations for failures to report closed-end mortgage loan data for 2022, 2021, or 2020.
- While any 多宝游戏下载-supervised institution may elect to report data voluntarily for those years, the 多宝游戏下载 does not expect those institutions to collect and report data retroactively for closed-end mortgage loans covered by the Court鈥檚 order vacating the CFPB 2020 HMDA Final Rule. Institutions affected by the Court鈥檚 order, and that meet the reporting thresholds of 25 closed-end mortgage loans in each of the two preceding calendar years as of 2023, should start collecting data in 2023 and reporting data in 2024.